Amidst a struggling economy and despite Chancellor John Silber’s controversial closure of the Boston University Academy’s Gay-Straight Alliance, donations to the alumni fund rang in at a high of $90.6 million for the 2002 fiscal year, surpassing the $85.6 million raised the prior year. The fund also gained an additional $60 million in pledges in fiscal 2002 for future gifts.
‘Our figures are actually up from previous years,’ said Dean Lampros, director of annual funds for the School of Theology’s Office of Development and Alumni Relations. ‘I think that people are philanthropically minded even when the economy takes a downturn and they may be even more philanthropically minded when the economy is bad.’
‘I have not had any negative feedback from alumni regarding actions the chancellor has taken recently,’ Lampros said later.
Alumni giving is up 56 percent over last year, according to Director of Major Gifts and Estate Planning Mary Tambiah.
‘This does not include parents or state distributions; this would include stock gifts as well as cash donations,’ she said. ‘If it’s an outright gift or if it’s cash, you can deduct up to 50 percent of your adjusted growth income.’
Stock giving has increased due to the sluggish market, since prices per share have dropped, Tambiah said. However, Tambiah said stock giving is more advantageous for people who have owned stocks over the past few decades and do not have to pay taxes on appreciation.
‘The downturn in the stock market has wiped out some of the recent appreciation on some of the stocks people have bought recently, but it would not have affected people who invested 30 years ago,’ Tambiah said.
Alumni donations have risen consecutively for the past seven years; in 1995, BU received $37.7 million, according to university officials. BU’s Alumni Relations Department hopes to acquire $100 million in donations by the end of the fiscal year 2003. However, the School of Public Health and other schools will be more in need of funds and resources in the face of proposed tax cuts in coming months.
‘With Governor Romney coming on board, I know public health as a whole is going to take a pretty big cut,’ said former SPH Alumni Board President Scott Troppy.
Over the past year, BU’s giving fund mildly suffered due to increased unemployment and the current economic downturn. BU lost several foundation proposals following Sept. 11, including one for $10 million that was rerouted to New York to help victims of the attacks, according to the Alumni Relations newsletter.
More recently, Chancellor Silber’s decision to shut down the GSA provoked threats from some BU students and alumni to withhold donations, according to reports in the fall. However, thus far it has not acted as an overall deterrent, particularly among recent graduates, Troppy said.
‘There were a lot of 2001 and ’99-’00 graduates who were giving gifts for the first time,’ Troppy said. ‘There were 10 to 12 new donors, so that’s great.’
Several alumni relations officers said they were not aware of anyone who stopped donating money because of Silber’s actions. Tambiah said any concerns the office received from donors were addressed but did not disclose the nature of any complaints.
‘We have replied to them, and Dr. Silber did send out a letter, which I [may add] was exquisite,’ Tambiah said.
In reaction to the GSA’s disbandment, State Senator Cheryl Jacques recently asked, ‘Every alumni … who is connected to BU that makes contributions to consider withholding them.’
‘I disagreed with her and sent her a letter,’ Troppy said. ‘I disagree with the whole disbanding of it, but I don’t agree with ‘oh just cut the funds off.’
Many students need the student loan fund to go to school, he said
‘If you decrease your giving, you are preventing students from going to school,’ Troppy said.
Lampros confirmed that money given to the annual fund is used for educational purposes and withholding funds only takes away from improvements for the students.
‘It supports library acquisitions, various student life activities, and faculty development.’ Lampros said. ‘We recently completed a study room for students.’
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